What to do with Shiningbank

Article Excerpt

SHININGBANK ENERGY INCOME FUND $13.83 (Toronto symbol SHN.UN; SI Rating: Speculative) is now the subject of a takeover bid by PrimeWest Energy Trust $22.78, symbol PWI.UN on Toronto. Shiningbank unitholders will receive 0.62 of a PrimeWest unit (with a current value of $14.12). The exchange of units will be tax-free for Shiningbank unitholders, until they sell their PrimeWest units. The combined entity will have production of approximately 66,000 barrels of oil equivalent per day, allocated 70% to natural gas and 30% to crude oil and natural gas liquids. Shiningbank unitholders will receive a 3.3% increase in distributions per unit. PrimeWest units now yield 15.8%. The combined company would appear to have attractive long-term prospects. However, it may take it a while to fully integrate the Shiningbank assets. Shiningbank unitholders should exchange their units for PrimeWest units. units…

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